Empty Nester Dilemmas: How to Manage Household Funds once the Kids have Moved Out

nest with note that says vacant

It's that time. The time you've both dreamed of and dreaded - all of your children have left the nest.

As you're getting situated into your new lifestyle, it's important to get your financial bearings reevaluated. With less people in your home, your spending priorities will change. Instead of basking in all your newly available funds, it's crucial to first assess some important household expenses and upcoming dilemmas.

  1. Less children means less groceries, laundry, paying to attend their extra-curriculars on the weekends -  the list goes on. Spending less each month allows you to spend more on other things you may enjoy, but it's still important to set up a financial plan that allows you to better manage your influx of funds. Talk with a financial advisor to help you manage your money with your new goals in mind.
  2. If you're a parent who is willing to financially help their children get on their feet after moving out, make sure you are setting clear boundaries. As a parent, we want to see our children grow into financially responsible adults, and that requires being strict on what you're willing to help them out with and what they need to take on for themselves. Without those boundaries, you are impacting important financial areas in your life such as retirement.
  3. A home that once fit several people is soon to house only two. Now is a good time think about your plans for renovating or moving. For some, moving is not an option, but a renovation of an outdated kitchen or bathroom might be the perfect choice - especially for resale value later down the road. For others, downsizing is the best option. These both impact your financial situation greatly, so take time to plan out your future living situation.
  4. Something many older adults postpone for longer than necessary is estate and retirement planning. It's normal to put your kids' needs first and yours, such as preparing a will or evaluating your retirement plan, on the backburner. But, now that you have more time, it is important to begin those processes. As noted in Money Magazine, a study found that empty-nesters spend over half as much when they're kids have left home than when their children were living at home. This is a perfect illustration that highlights the importance of reevaluating your saving strategy for retirement.

Fortunately, Telhio Credit Union is staffed with the best financial advisors who can help you manage your finances in a way that best serves your new lifestyle. Give us a call today at 614-221-3233.

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